2023-07-27 15:23:58 ET
SunPower ( NASDAQ: SPWR ) -1.9% in Thursday's trading following the previous session's 15% shellacking after it pre-announced Q2 results well below Wall Street expectations and cut full-year guidance, citing a weakening demand environment amid macroeconomic uncertainty and rising rates.
Baird's Ben Kallo downgraded the stock to Neutral from Buy and slashed his price target to $12 from $24, saying he is skeptical of SunPower's ( SPWR ) decision to reduce its platform investment given the intensifying competition for market share in the U.S.
SunPower ( SPWR ) cited weaker demand in the Southeast in its pre-announcement, contrary to Sunnova Energy ( NOVA ), which has posted strong customer additions in the region, and Kallo estimates SunPower's demand slowdown may be a sign of losing market share to Sunnova and other players.
SunPower's ( SPWR ) exposure to California and new home builds will be near-term headwinds in addition to the macro environment, Kallo said.
More on SunPower:
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- Analysis: SunPower: Might Not See A Better Entry Point
- Stock price return: Down 45.5% YTD, down 40.5% in the past 12 months
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SunPower cut at Baird as investment cut may cause market share loss